| a trust in which a trustee controls the financial investments of a public official, without the beneficiary's knowledge of how his or her affairs are administered, in order to avoid conflict of interest. |
| blind trust n. A financial arrangement in which a person, such as a high-ranking elected official, avoids possible conflict of interest by relegating his or her financial affairs to a fiduciary who has sole discretion as to their management. The person choosing the trust also gives up the right to information regarding the status of the assets. |
Blind Trust
A trust in which the executors have full discretion over the assets, and the trust beneficiaries have no knowledge of the holdings of the trust.
Investopedia Commentary
Blind trusts are generally used when a trustor wishes to keep the beneficiary unaware of the specific assets in the trust, such as to avoid conflict of interest between the beneficiary and the investments.
Related Links
Who Is The Beneficiary Of Your Account?
Problematic Beneficiary Designations - Part 1
Problematic Beneficiary Designations - Part 2
See also: Beneficiary, Exemption Trust, Irrevocable Trust, Trustee, Trustor, Unit Investment Trust, Unit Trust